Phuket Island is one of Asia’s most captivating holiday destinations, but it also has an extremely buoyant property market, which is attracting many foreigners to relocate to the island and buy property here.

Buying property in Phuket can be one of the most rewarding investments in Southeast Asia — whether you’re purchasing a tropical holiday home, relocating for lifestyle reasons, or investing for rental returns. But beyond the purchase price, it’s crucial to understand the hidden costs that can arise during the process.

While Thailand remains affordable compared to many Western countries, foreign buyers should plan carefully for these additional expenses — especially in Phuket’s property market, where unique local regulations and lifestyle preferences shape the experience.

1. Property Transfer Fees and Taxes in Phuket

The main official fees are:

  • Transfer Fee – 2% of the registered value of the property, usually shared 50/50 between buyer and seller (though this can be negotiated).

  • Specific Business Tax (SBT) – 3.3% of the sales price or appraised value (whichever is higher), applicable if the seller has owned the property for less than 5 years.

  • Stamp Duty – 0.5% (only applies if SBT is not charged).

  • Withholding Tax – Calculated based on the seller’s income tax bracket or 1% of the declared value (if a company is selling).

Tip: For Phuket property purchases, these fees are usually paid at the local Land Office in Phuket Town. Always clarify in advance who is responsible for each fee.

2. Legal Fees and Due Diligence Costs

While not a legal requirement, hiring a lawyer in Phuket to conduct due diligence is highly recommended. This includes:

  • Verifying the land title deed (Chanote)

  • Checking for any existing mortgages or encumbrances

  • Reviewing building permits and environmental restrictions

  • Drafting or reviewing contracts

Estimated cost: Between THB 25,000 – THB 50,000 depending on complexity.

3. Furnishing and Fit-Out Costs

Most condominiums and villas in Phuket are sold fully or semi-furnished, but buyers often choose to upgrade appliances, décor, or furniture to suit their lifestyle or rental goals.

  • A basic fit-out for a small condo: THB 200,000 – THB 500,000

  • For luxury villas: THB 2-3 million and upwards.

4. Juristic Fees and Sinking Funds

If you’re buying a Phuket condominium, you’ll encounter:

  • Juristic Management Fees – Monthly common area fees (typically THB 40–80 per sqm).

  • Sinking Fund – A one-time fee for major future repairs, paid upfront (THB 500–800 per sqm).

Learn more in our article: Phuket Condominium Juristic Person Explained

5. Utility Connection Fees

Some new developments charge extra for connecting electricity and water:

  • Electricity meter installation: THB 5,000–10,000

  • Water connection: THB 3,000–8,000

These costs are more common in off-plan or new builds in areas like Chalong or Nai Harn.

6. Company Setup or Lease Structure Fees

If you’re buying leasehold property or using a Thai company to hold land or a villa, expect:

  • Company formation and legal maintenance: to things correctly these fees could be in excess of THB 300,000

  • Lease registration: 1.1% of total lease value (typically paid at the Land Office)

Read: Leasehold Ownership in Phuket – What You Need to Know

7. Currency Exchange and Transfer Charges

Foreign buyers must transfer funds into Thailand in foreign currency and convert to Thai Baht, which is documented via an FET form (for condo purchases).

  • Bank charges and currency margins can add 1%–2% to your cost.

  • Choose reputable exchange services to avoid hidden markups.

More details: What is an FET Form and Why It’s Important

8. Ongoing Property Maintenance

Whether buying a villa in Rawai or a condo in Surin, maintenance is an ongoing cost:

  • Private villa upkeep: Pool cleaning, gardening, pest control – ~THB 5,000–15,000/month

  • Condos: Maintenance is handled by the management, but owners pay monthly common fees.

9. Renovation or Upgrade Costs

Older properties in areas like Kamala or Kata may need refurbishment:

  • Basic renovations: THB 200,000–500,000

  • Major works: THB 2 million+ depending on structural and design choices

10. Tax Implications and Income Reporting

If you’re planning to rent out your villa in Phuket, or even your condo, (short-term or long-term):

  • You may need to report rental income and pay personal income tax in Thailand.

  • Short-term rentals have legal restrictions. See: Short-Term Rentals in Phuket

Why Understanding Hidden Costs Is So Important

Phuket offers a unique blend of lifestyle, value, and capital growth — but it’s critical to go in with your eyes open. Whether you’re looking to buy a condo in Phuket, invest in a sea view villa, or secure Phuket real estate for retirement, budgeting for all the associated costs ensures no surprises down the road.

Frequently Asked Questions About the Hidden Costs of Buying Property in Phuket

1. What are the government fees when buying a property in Phuket?

Buyers in Phuket typically encounter transfer fees (2%), specific business tax (3.3%), and stamp duty (0.5%) depending on the seller’s situation. These costs are normally split, but negotiations vary.

2. Do I have to pay property taxes every year in Phuket?

Yes, annual property tax may apply under Thailand’s Land and Building Tax Act, especially for investment properties or second homes. However, the amounts are relatively modest compared to Western countries.

3. Are there legal fees when buying Phuket property?

Absolutely. While not mandatory, hiring a qualified lawyer is highly recommended. Legal fees can range from THB 40,000 to over THB 300,000, depending on the complexity of the transaction and due diligence requirements.

4. What are maintenance and sinking fund fees in condominiums?

If you’re buying a condo in Phuket, expect ongoing monthly maintenance fees and a one-time sinking fund payment at transfer. These contribute to upkeep of common areas and long-term repairs.

5. Are there extra costs for foreign buyers of Phuket condos?

Yes. Foreign buyers must remit funds in foreign currency and secure a Foreign Exchange Transaction Form (FETF), which may include bank handling fees. They should also budget for translation, notary, and documentation costs.

Phuket’s real estate market offers unique opportunities for expats and investors seeking to own a slice of paradise. However, the hidden costs—ranging from legal fees and maintenance to depreciation risks—highlight the importance of thorough preparation. 

The key to success lies in ensuring transparency, seeking professional guidance, and adopting a cautious, informed approach. Thai Residential can help advise you on all potential costs involved in owning a property and provide strategies to reduce those costs. By doing so, you can avoid costly pitfalls and ensure your dream property becomes a rewarding investment rather than a financial burden.

Get Expert Advice Before You Buy

At Thai Residential, we’ve helped hundreds of foreign buyers navigate the Phuket property market with confidence. Our team provides transparent guidance, legal insight, and tailored property recommendations.

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